Editing Taxation in the United States (section)

===Social Security and Medicare taxes===
{{Main|Federal Insurance Contributions Act tax}}

Federal social insurance taxes are imposed equally on employers<ref>{{USC|26|3111}}.</ref> and employees,<ref>{{USC|26|3101}}.</ref> consisting of a tax of 6.2% of wages up to an annual wage maximum ($132,900 in 2019<ref name=":1" />) for Social Security plus a tax of 1.45% of total wages for Medicare.<ref>Note that an equivalent Self Employment Tax is imposed on self-employed persons, including independent contractors, under {{USC|26|1401}}. Wages and self employment income subject to these taxes are defined at {{USC|26|3121}} and {{USC|26|1402}} respectively.</ref> For 2011, the employee's contribution was reduced to 4.2%, while the employer's portion remained at 6.2%.<ref>{{cite web|url=https://www.irs.gov/pub/irs-pdf/p15.pdf |title=IRS.gov |access-date=2013-11-15}}</ref> There is an additional Medicare tax of 0.9% on wages over $200,000, to be paid only by the employee (reported separately on the employee's tax return on Form 8959). To the extent an employee's portion of the 6.2% tax exceeds the maximum by reason of multiple employers (each of whom will collect up to the annual wage maximum), the employee is entitled to a refundable [[tax credit]] upon filing an income tax return for the year.<ref>{{USCSub|26|31|b}}; {{USCSub|26|6413|c}}.</ref>
[[File:Payroll tax history.jpg|frameless|center|upright=3.65|Payroll tax rates history]]